EDA specialist Jennifer Howard, right, discusses the benefits of implementing a property tax abatement program as an incentive for new home construction with the Winnebago EDA on Wednesday, March 1.

The Winnebago Economic Development Authority (EDA) discussed methods to incentivize new housing construction at a meeting held on Wednesday, March 1.

“Several communities incentivize new construction in the form of a property tax abatement,” EDA specialist Jennifer Howard explained. She added she knows of two cities in Faribault County which are considering implementing such incentives.

A property tax abatement program’s purpose would be to encourage the new construction of owner-occupied and residential rental units for single-family and multi-family housing units through offering financial incentives to prospective owners.

Units of housing eligible for the program would include single-family homes and multi-family complexes. The homes could be new construction, provided the structure meets the city’s building and zoning codes.

To be eligible for the program, properties would need to be located within Winnebago. They could not be receiving other financial assistance, their property taxes must be current and they must not have any outstanding land issues.

The city has the authority to utilize tax abatements for programs such as this per State Statute 469.1813, which grants a political subdivision the authority to abate property taxes.

“What we are proposing is that new construction of any type built within the city limits would receive 100 percent tax abatement from the city for five years,” Howard summarized. “After five years, they would pay the city taxes.” 

Howard clarified that beneficiaries of the program would not need to pay back their abated taxes once the five-year period had passed.

To utilize the tax abatement program, eligible property owners would pay their yearly taxes as normal. Then, they would file an application with the city requesting a reimbursement.

Howard added that prior to applying, the property owner would be pre-approved for the tax abatement program.

If the property were sold prior to the end of the abatement’s five-year period, its new owner would benefit from the remaining years left in the abatement’s five-year term.

Observing that there may be nearly 70 vacant lots in Winnebago, the EDA discussed the merits of implementing the suggested program.

“What we’re talking about, pretty much, is money that we’re not getting anyway,” city administrator Judi Hynes said. “In five years, we would start getting that money.” 

As an added bonus for new home construction, Howard suggested the city offer additional, smaller incentives to property owners, as well.

“For extra incentives, we would like to recommend waiving the fee for water hook-ups, and then offering (the property owners) a family or single pool pass for the year,” Howard said.

The waived fees for water hook-ups would total $500.

Howard concluded, “I think the long-term benefit of incentivizing some of this – it’s rolling and exponential. Think about a family of four, and what they bring to the town.” 

To move forward with implementing the property tax abatement program, Howard requested a motion from the EDA to recommend the program to the Winnebago City Council, contingent on any additional recommendations from the city attorney. She also requested the EDA recommend waiving the water hook-up fees and offering the pool passes.

The EDA passed the motion unanimously.

The EDA also resumed discussion about an exciting opportunity to promote Winnebago which Howard introduced to the board last month.

The Mankato MoonDogs – an elite amateur baseball team – is piloting a program which allows cities in the area to sponsor a special evening for their community at the Mankato MoonDogs Stadium.

Among other things, participating cities would be able to select a local individual or group to perform the National Anthem and throw in the first pitch. They would also be given access to the stadium’s jumbo video screen to air promotional material for the city.

Most importantly, the city’s local businesses are invited to sponsor a section of premium grandstand seats to be reserved for residents for the cost of $1,000 per 100 tickets.

The EDA had already expressed enthusiasm for the idea in February, and on March 1 they continued making plans for ‘Winnebago Night’ at the MoonDogs Stadium.

Howard said she had selected Friday, June 9 as the date for ‘Winnebago Night.’ She also said Genesis Classical Academy had been contacted about organizing some of its students to sing the National Anthem.

Howard informed the EDA of an additional opportunity available. For an additional $4 per ticket, Winnebago residents could receive a MoonDogs hat, concessions and a gift certificate for one buffet meal at Pizza Ranch.

The EDA was amenable to the offer.

What remained was for the EDA to start recruiting businesses to sponsor tickets.

Winnebago businesses which have already agreed to be sponsors include Rockin’ Robins, John’s Auto Service, The Buzz Stop and Boice W Hodges Insurance. The EDA will continue to seek businesses who are interested in sponsoring the event.

“Businesses will get advertising throughout the night, too,” Howard observed. “It’s a win-win for everybody.” 

In other business, the Winnebago EDA: 

• Changed the date of the next EDA meeting to Wednesday, April 12, at 5 p.m.

• Discussed the possibility of adding signage near Highway 169 advertising amenities in Winnebago to passersby.

Howard said she is continuing to research various options for signage, but the most likely option would be to place a large sign well off the highway so as not to interfere with any state highway requirements.

• Heard an update on the progress of a housing study commissioned from Bolton & Menk.

Howard said the city will be receiving a final report from Bolton & Menk shortly, after which point there will be a final review of the study before the results are presented to the City Council.